Alliance News: SacOil Enters Egypt With Acquisition Of Lagia Oil Field
10 Sep 2014
LONDON (Alliance News) - Africa-based oil company SacOil Holdings Ltd Wednesday said it will acquire a 100% working interest in the Lagia oil field in the Sinai Peninsula in Egypt in a deal worth USD14.1 million in cash and shares, representing its first investment in the north African country.
SacOil will buy the entire issued share capital of Mena International Petroleum Company Ltd from its parent company, Mena International Petroleum Holdings Company Ltd, a subsidiary of Calgary, Canada-based Mena Hydrocarbons Inc.
SacOil will pay a total of USD14.1 million for the business, split between USD10 million in shares of SacOil and USD4.1 million in cash to settle all of MIP's liabilities.
SacOil said the Lagia field is currently in the development stage, with heavy oil in shallow reservoirs and light oil potential in deeper reservoirs. The company said it intends to implement a phased development programme in order to bring the field into production.
"This acquisition represents the first booked reserves for the company and through our anticipated development programme, we will be targeting a daily production rate from the Lagia oil field of more than 1,000 barrels of oil per day by Q4 2015," said SacOil Chief Executive Thabo Kgogo.
SacOil shares were down 0.7% to 3.60 pence in early trade on Wednesday.